Initial margin requirement

Definition: [crh] When buying securities on margin, the proportion of the total market value of the securities that the investorDefinition: > must pay for in cash. The Security Exchange Act of 1934 gives the Board of Governors of the FDefinition: ederal Reserve the responsibility to set initial margin requirements, but individual brokerage firms are free to set higher requirements. In futures contracts, initial margin requirements are set by the exchange.

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